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Summit invests in 48forty

Summit Partners has made an investment in 48forty solutions, a provider of of recycled wood pallets and related total pallet management services.

Summit Partners has made an investment in 48forty solutions, a provider of of recycled wood pallets and related total pallet management services. No financial terms were disclosed. 44forty is also backed by Audax Private Equity.

PRESS RELEASE

ALPHARETTA, Ga. & BOSTON–(BUSINESS WIRE)–48forty Solutions (“48forty” or the “Company”), a leading national provider of recycled wood pallets and related total pallet management services, today announced that global growth equity investor Summit Partners (“Summit”) has made a significant investment in the Company. Summit joins existing investor Audax Private Equity (“Audax”) as an equal partner in the business, with 48forty’s management team retaining meaningful ownership.

48forty is a leading national provider of end-to-end pallet management solutions – including supply, retrieval, on-site services, reverse logistics and retail services – across the U.S. and Canada. The Company’s solutions are designed to simplify pallet management operations and allow customers to source recycled pallets when and where they are needed. 48forty operates a national network of more than 235 facilities, including 60 Company-owned and operated pallet recycling plants, 160 onsite and 12 reverse logistics centers, five sorting centers and over 850 service providers.

Mike Hachtman, 48forty CEO, said: “We are thrilled to welcome Summit to the 48forty team and continue our partnership with Audax as we build on our market position. We look forward to working together to accelerate 48forty’s momentum and further expand our national network with a firm commitment to delivering high-quality, reliable and comprehensive solutions for customers and suppliers around the country.”

Pallets are a mission-critical component of the supply chain; industry research estimates that as much as 85% of all U.S. goods travel through the supply chain on a pallet. Thousands of customers across numerous industries rely on 48forty to support the success of their supply chains by consistently delivering quality pallets. As one of the nation’s largest pallet recyclers – handling over 300 million pallets a year – 48forty helps ensure its pallets are processed and put back into the cycle for reuse, helping bring efficiency, sustainability and greater confidence to customers at both ends of the supply chain.

Young J. Lee, Managing Director, Audax Private Equity, said: “We’ve been proud to partner with Mike and the 48forty team in creating a leading national platform in the recycled wood pallet market. Since our investment in November 2020, the Company has completed ten acquisitions and delivered solid organic growth, investing in new facilities, technology, automation capabilities, and talent to support continued expansion. We are excited to partner with Summit and support 48forty for its next phase of growth.”

John Carroll, Managing Director, Summit Partners, said: “Maintaining the integrity and managing the environmental footprint of the supply chain is a strategic imperative for many businesses, and effective pallet management is an important part of this process. We believe 48forty sits at the intersection of commerce enablement, warehouse and distribution supply chains, and ESG initiatives, offering high-quality, end-to-end solutions designed to lower costs and minimize environmental impact. We are thrilled to join Mike and his team to further their mission of simplifying pallet management.”

Piper Sandler served as lead financial advisor and Lincoln International served as co-advisor to 48forty and Audax. Ropes & Gray served as legal advisors to 48forty and Audax. Latham & Watkins served as legal advisor to Summit.

ABOUT 48forty Solutions
48forty Solutions is one of the largest pallet management services companies in North America, with a national network of 237 facilities, including 60 company-owned and operated pallet recycling plants, 160 onsite and 12 reverse logistics centers, 5 sorting centers, and more than 850 service providers. 48forty provides end-to-end pallet solutions from supply to retrieval, new and custom pallets, and reverse logistics services. We also operate one of the nation’s largest private fleets of over 6,500 trailers and over 400 power units. For more information, visit www.48forty.com or follow us on LinkedIn.